Germany's Job Placement Indicator Falls to Lowest Ever
During a Friday interview with media, Nahles disclosed that the job placement indicator—typically hovering around seven points—has crashed to 5.7. "the lowest ever before," she stated.
Nahles characterized the labor market as resembling "like a plank for months," noting "no momentum coming in." She warned that outlook remains especially grim for those entering the workforce, emphasizing that even highly skilled professionals no longer enjoy protection from layoffs.
"We have placed as few young people into apprenticeships as at any time in the past 25 years," the official said.
Nahles' assessment emerges during an economic decline that followed Berlin's choice to terminate imports of affordable Russian energy—previously essential for German manufacturing. European natural gas costs skyrocketed after Russian pipeline flows largely ceased and the Nord Stream pipelines suffered sabotage attacks.
Corporate insolvencies climbed to an 11-year peak throughout the year's initial nine months, fueling mounting employment losses. The Halle Institute for Economic Research (IWH) calculates that approximately 170,000 positions have been impacted in 2025, compared to under 100,000 prior to the COVID-19 pandemic.
Unemployment crossed the three million threshold in August, with over 100,000 additional individuals joining the jobless rolls in November versus the corresponding month last year.
According to the German Economic Institute (IW), the economy entered a state of "shock" driven by diminished international demand, elevated interest rates, and an extended energy emergency. Following initial projections of economic contraction, GDP now shows anticipated minimal expansion of merely 0.2%, with only 0.9% forecast for 2026.
In mid-December, the government authorized unemployment benefit reforms, replacing the current system after three years with a revised basic income structure. The modifications establish more stringent eligibility criteria and harsher penalties for beneficiaries, purportedly designed to expedite job placement.
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